According to BlockBeats, Terra's LUNA and UST explosions in 2022 caused global investors to lose $40 billion. Terraform Labs and founder Do Kwon reached a settlement with the SEC, paying fines of $4.47 billion and $200 million respectively.
The SEC issued a notice on the 26th explaining how investors and creditors will be compensated. The compensation needs to be handled through the bankruptcy case of Terraform Labs. The company filed for bankruptcy protection in January this year, with assets and liabilities estimated to be between $100 million and $500 million.
The SEC said Terraform Labs will seek approval for a Chapter 11 liquidation plan in the bankruptcy case, establish a liquidation trust or property representative to liquidate the remaining assets and pay compensation to creditors and investors. The SEC emphasized that no payment will be received until investors and creditors are fully compensated.
The bankruptcy liquidation plan is expected to be released in the fall of 2024, and creditors and investors will have the opportunity to review and vote. The bankruptcy court will announce the procedures and deadlines for submitting loss claims. For details, please visit https://dm.epiq11.com/case/terraform/info.
In terms of LUNA coin price, it reached US$0.83 at the end of May and is currently trading at US$0.385, a drop of more than 70% from the year's high of US$1.26.
